Templeton Rye reaches lawsuit settlement, will pay refunds

Templeton

The label for Templeton Rye has been changed as the result of a lawsuit. The back label will now feature the words “Distilled in Indiana” and remove the words “Small Batch” and “Prohibition Era Recipe" from the front label.

The label for Templeton Rye has been changed as the result of a lawsuit. The back label will now feature the words “Distilled in Indiana” and remove the words “Small Batch” and “Prohibition Era Recipe" from the front label.

If you’ve ever bought a bottle of Templeton Rye Whiskey, you might be due a refund.

Under a preliminary settlement announced Tuesday, anyone who has bought a bottle of Templeton Rye since 2006 is entitled to a refund of $3 per bottle, up to six bottles, if lacking proof of purchase. For anyone with proof of purchase, the refund is double: $6 per bottle, up to six bottles.

The terms were hammered out almost a year after a Chicago man filed a class-action lawsuit in Cook County claiming that Templeton Rye Spirits was “deceptively marketing” its whiskey as an Iowa product.

In fact, the spirit is largely distilled and aged at a plant owned by MGP Ingredients in Lawrenceburg, Ind., along with many other ryes on the market. A second class-action suit against Templeton was also filed in Cook County, and a third was filed in Polk County, Iowa, according to the Des Moines Register.

In addition to compensating customers, the Templeton whiskey label will now feature the words “Distilled in Indiana” on the back and remove the words “Small Batch” and “Prohibition Era Recipe” from the front.

According to the suit, plaintiff Christoper McNair, along with “thousands of consumers across the country … thought they were buying authentic Iowa whiskey and were unaware of the actual origin of its whiskey.”

McNair claimed in the suit he had bought more than a dozen bottles of Templeton Rye (at an approximate cost of $34.99 per bottle) since 2008 and “liked” the company on Facebook, all while believing the product was made in Iowa.

Bill Hogan, Chicago Tribune

The old Templeton Rye label features the words "Prohibition Era Recipe" boldly across the front. The new label won't.

The old Templeton Rye label features the words "Prohibition Era Recipe" boldly across the front. The new label won't.

In a statement released Tuesday, Kerkhoff said: “Though the relationship between Templeton Rye and our Indiana-based distillery partner is described on our website, we recognize that our marketing efforts should have provided more clarity about our production process. As a result, we’ve made adjustments to our label and marketing materials. With these changes, we’re eager to move ahead and refocus on bringing the history and spirit of the community of Templeton, Iowa, to life through Templeton Rye Whiskey as we share ‘The Good Stuff’ with whiskey lovers everywhere.”

Kerkhoff said Tuesday that Templeton buys aged rye whiskey from MGP Ingredients and blends it with an “alcohol flavoring formulation” made by Clarendon Flavor Engineers of Louisville to achieve a profile similar to the whiskey his grandfather made during Prohibition. The blended product is then cut with distilled water and bottled in Templeton.

Kerkhoff said he is glad to move on from the suit.

“This is unfortunate, but we’re not looking back -- we’re only looking forward,” he said.

The settlement terms are preliminary and subject to final approval by a circuit court judge, Kerkhoff said. The method for applying for a refund will be determined after the settlement is affirmed. Chris Dore, of Edelson PC, which filed the suit on behalf of McNair, declined to comment.